Real estate firm Gazit-Globe raises $155 mln in share offering

The company sold 17 million shares at 35.5 shekels a share. Norstar Holdings Inc, which owns 50.25 percent of Gazit-Globe, bought 8.5 million of the shares at a total cost of 300 million shekelsReuters | December 31, 2015, 15:30 IST

The company sold 17 million shares at 35.5 shekels a share. Norstar Holdings Inc, which owns 50.25 percent of Gazit-Globe, bought 8.5 million of the shares at a total cost of 300 million shekels.

Gazit-Globe said it will use the proceeds from the offering to refinance its debt and for general corporate purposes.

"The offering will allow the company to maintain a strong balance sheet and high liquidity for the benefit of the company's operating activities while strengthening its ability to identify and execute new investment opportunities in its core activity," said Chief Executive Rachel Lavine.

The company, whose share price has fallen 24 percent this year to close at 35.2 shekels on Wednesday, has a market value of 6.3 billion shekels.

It operates in the United States through Equity One and in Canada through First Capital Reality Inc . It is the largest shareholder in Finland's Citycon , controls shopping mall developer and is expanding in Brazil.